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Trading activity by manufacture of dutable goods

831 views 3 replies

Raghavendra

accountant

27 Points Joined August 2009

Dear Experts,

We are the manufacture of Dutable goods, if we make trading of such goods (purchase and sale of similar goods manufactured by us), wether it is treated as 'EXEMPTED SERVICES' and whether it is hit by Rule 6 of Cenvat Credit Rules.

Kindly give clarification.

Replies (3)

CA Unnikrishnan Nair N

Chartered Accountant

2083 Points Joined February 2011

Trading is hit by Rule 6 of CCR eventhough you trade similar goods manufactured by you.

nitin kumar vijay

Manager(Accounts)

282 Points Joined January 2008

If you make trading of goods you shoud be reversed CENVAT credit taken on trading goods.

vishnu

job

75 Points Joined January 2009

as per the amendement in the cenvat credit rules from 1.03.2011, the common inputs and inputs service pertaining to trading and manufaturing has to be taken into consideration for prop*rnate reversal pertaining to the trading activity or payment of duty @ 5% on the differnce value of purchase and sale value.